Bhubaneswar: The Odisha Cabinet has approved a proposal to amend the Odisha Shops and Commercial Establishments Act, 1956. This move is aimed at reducing the compliance burden on small businesses, providing impetus to entrepreneurs for creating more economic activities, expanding employment opportunities, and improving the Ease of Doing Business in the state. The Cabinet also seeks to promote greater work participation opportunities for women.
Since the State Legislative Assembly is not in session, and circumstances exist which render it necessary for the promulgation of an Ordinance under Article 213 of the Constitution of India, the amendments are being implemented through the promulgation of the Odisha Shops and Commercial Establishments (Amendment) Ordinance, 2025. This Ordinance will later be replaced by an Act of the State Legislature in due course.
The proposed Ordinance shall cover the following amendments in the Odisha Shops and Commercial Establishments Act, 1956:
Applicability: The provisions of the Act shall be applicable only to shops and commercial establishments that engage 20 or more employees. However, all establishments must display an Odia signboard, irrespective of the number of employees they employ.
Working Hours: The daily working hours are increased from 9 hours to 10 hours. The weekly working hour limit is limited to 48 hours, as already existing in the Act.
Rest Interval: The work shift of an employee in an establishment shall not exceed six continuous hours without an interval for rest of at least half an hour.
Overtime Limit and Wages: The limit for overtime work is increased from 50 hours to 144 hours during a period of three months. Where an employee works for more than 10 hours on any day or for more than 48 hours in any week, they shall be entitled to double the ordinary rate of wages for such overtime work.
Operation Hours: Establishments shall have the choice to remain open 24 hours a day, 7 days a week, and 365 days in a year.
Night Work for Women: The prohibition on the engagement of women employees during the night is removed. Women employees can be engaged during the night with their written consent and subject to conditions of safety, security, and dignity of women as may be notified by the State Government.